The future of insurtech regulation

ASIC has revealed the best ways to engage and develop with the regulator on insurtech.

At the inaugural Insurance Business Insurtech Summit, held in Sydney yesterday, Emma Curtis, group senior manager for insurance at ASIC, said that the regulator remains open to insurtech and its further development.

Speaking alongside Melisande Waterford, general manager of licensing at APRA, Curtis said that both regulators encourage those looking towards insurtech to contact the regulators.

“To sum up, we both think that the regulatory environment is very much open to insurtech,” Curtis told attendees. “We think that it can facilitate positive change. From our perspective it has potential for good consumer outcomes.”

Curtis noted that the fallout of the Royal Commission and consumer outcomes remains to be seen and will likely inform “community appreciation” of insurtech, but the best way to deal with the regulators is to have ongoing discussions.

“We are very keen to hear from businesses that wish to share their progress in developing and applying technology, as well as those seeking informal assistance in developing their business,” Curtis said. “If you want to reach out to ASIC to talk about a particular product initiative or distribution opportunity, even if you are not seeking formal advice or guidance, that can really help us understand what is happening in the industry.”

Curtis pointed towards the ASIC Innovation Hub website as the best way to contact ASIC with questions regarding possible insurtech ideas and businesses.

Whilstregulation of ever-changing technology poses one of the biggest challenges to regulators over the coming years, Curtis noted that early engagement will be key, not only for regulators to deal with changes, but for innovative businesses to also gain the best outcomes to ultimately benefit clients.

“In relation to the challenge for regulators, one way to deal with that is to engage us early, provide us with information, start talking to us, educate us and take us on the journey with you,” Curtis said. “Valuable collaboration can occur in many ways throughout the ecosystem and if all of us are as receptive to as much feedback as possible, this will help ensure that Australia continues to take a leading role in the development and deployment of insurtech solutions.”